Hot bitcoin summer could be in store, as price hovers above $30,000
Bitcoin is keeping its head above $30,000, despite declining on Wednesday. Upcoming bitcoin halving event and ETF decision could coincide to create ‘compelling narrative.’
Bitcoin's price kept its head above $30,000 despite declining on Wednesday, with one analyst forecasting a summer of "aggressive accumulation."
The world's largest cryptocurrency by market capitalization dipped 1.6% to $30,458 at 1:06 p.m. in New York, according to CoinGecko.
K33 Research analyst Vetle Lunde sees the summer season underway as a prime accumulation period.
"Trading above $30k, with multiple positive catalysts ahead, I am becoming more bullish on BTC and view this summer as a key period to accumulate aggressively," Lunde said.
After the resurgence of institutional interest in spot Bitcoin ETFs, Lunde added that "all ingredients are in place for a spicy market in the coming nine months, with institutional interest greenlighting BTC as a viable sound investment alternative."
Increasing institutional interest in bitcoin
BlackRock's recent filing has ramped up CME and BTC ETP activities, the analyst noted, and the trend should persist until the filing's initial decision deadline.
Lunde, however, pointed out a disparity with retail investors.
"We’re not anywhere close to seeing similar tendencies of FOMO from the retail side of the market," he explained, noting a general apathy from retail participants.
Lunde said the upcoming halving event will also shape bitcoin's trajectory throughout 2023.
"It's a fairly compelling narrative that the yearly BTC selling pressure from miners will be reduced by 164,250 BTC following the next halving," he said.
Unlike previous post-halving rallies that started 6-12 months later, the current excitement could build sooner, especially if the U.S. Securities and Exchange Commission delays its BlackRock verdict, he added.
